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FXH or PJP or XLV
Which ETF would AI Choose? First Trust Health Care AlphaDEX Fund (FXH) vs. Invesco Pharmaceuticals ETF (PJP) vs. State Street Health Care Select Sector SPDR ETF (XLV)
Key Takeaways
- FXH employs an AlphaDEX quantitative methodology to select and tier-weight healthcare stocks from the Russell 1000 Index, resulting in approximately 70-80 holdings with a focus on growth and value factors.
- PJP tracks a dynamic Intellidex index limited to about 30 U.S. pharmaceutical companies, producing higher concentration and a narrower thematic exposure within the broader healthcare sector.
- XLV offers passive, market-cap-weighted exposure to roughly 60 large-cap healthcare names from the S&P 500, delivering broad sector representation at the lowest cost.
- Expense ratios differ materially: XLV at 0.08%, PJP at 0.58%, and FXH at 0.61%, influencing long-term cost efficiency for investors.
- Diversification depth varies significantly, with XLV providing the widest spread across pharmaceuticals, equipment, providers, biotechnology, and life sciences, while PJP concentrates in pharmaceuticals.
- Structural approaches range from smart-beta factor selection (FXH) and multi-factor dynamic indexing (PJP) to traditional sector indexing (XLV), affecting sensitivity to different market regimes.
Introduction
These three exchange-traded funds provide distinct pathways to healthcare sector exposure, a theme supported by long-term demographic trends, innovation in biotechnology, and evolving regulatory environments. While all focus on U.S. healthcare equities, they differ in index methodology, breadth of holdings, and factor tilts. FXH and PJP use active selection rules within healthcare subsectors, whereas XLV delivers unmodified market-cap exposure to the S&P 500 healthcare component. Investors comparing these vehicles can evaluate trade-offs between cost, concentration, and strategic construction in the current market environment.
First Trust Health Care AlphaDEX Fund (FXH) Overview
FXH seeks to track the StrataQuant Health Care Index, which applies the AlphaDEX methodology to select stocks from the Russell 1000 Index based on growth and value factors. The fund typically holds 70-80 securities, with top holdings including names such as Centene, Universal Health Services, and various biotechnology firms. Sector allocation remains nearly 100% healthcare, with meaningful exposure to health technology and services. The expense ratio stands at 0.61%. The tiered, modified equal-weighted approach distinguishes FXH by aiming for excess returns through systematic factor screening rather than pure market-cap weighting.
Invesco Pharmaceuticals ETF (PJP) Overview
PJP tracks the Dynamic Pharmaceutical Intellidex Index, which selects and weights approximately 30 U.S. pharmaceutical companies using quantitative criteria including valuation, risk, and momentum. Holdings feature large weights in established players such as Amgen, Merck, Pfizer, AbbVie, and Gilead Sciences, with the top 10 often exceeding 45% of assets. The fund maintains a narrow focus on the pharmaceuticals subsector. Its expense ratio is 0.58%. The multi-factor, tiered indexing methodology provides a rules-based yet concentrated approach to pharmaceutical exposure.
State Street Health Care Select Sector SPDR ETF (XLV) Overview
XLV replicates the Health Care Select Sector Index, representing the healthcare component of the S&P 500. The fund holds approximately 60 large-cap securities across pharmaceuticals, health care equipment and supplies, providers and services, biotechnology, life sciences tools, and health care technology. Top holdings typically include Eli Lilly, UnitedHealth, Johnson & Johnson, and AbbVie, with the largest positions carrying substantial weight. The expense ratio is 0.08%. As a straightforward, market-cap-weighted sector ETF, XLV emphasizes broad, low-cost representation of leading healthcare companies.
Industry and Thematic Landscape
The healthcare sector continues to benefit from aging populations, advances in personalized medicine, and ongoing innovation in drug development and medical devices. Capital flows have favored companies with strong pipelines in oncology, obesity treatments, and rare diseases. Regulatory developments around drug pricing and approval processes introduce periodic volatility, while macroeconomic factors such as interest rates influence valuation multiples for growth-oriented biotech and device firms. Geopolitical supply-chain considerations and patent expirations remain key risks across the industry, affecting both large pharmaceutical companies and smaller innovators.
Performance and Positioning Comparison
In recent market cycles, XLV has exhibited lower relative volatility due to its large-cap, diversified construction and heavy weighting toward stable pharmaceutical and provider names. FXH’s factor-based selection has produced periods of outperformance during rotations favoring growth or value healthcare stocks, though with greater turnover and concentration risk. PJP’s narrower pharmaceutical focus has led to sharper drawdowns during sector-specific regulatory or patent events but has also captured concentrated upside from blockbuster drug launches. Structural differences in holdings breadth and weighting explain much of the divergence in trend consistency and sensitivity to macroeconomic shifts.
AI Screener
Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore the AI Screener to refine your ETF research.
Tickeron AI Verdict
Based on observable structural strength, XLV currently presents the most favorable combination of low costs, broad diversification, and liquidity for core healthcare exposure. Its passive, market-cap-weighted design delivers consistent sector representation with minimal expense drag, supporting stable risk-adjusted positioning across market environments. While FXH and PJP offer differentiated factor and thematic tilts that may suit specific tactical views, the probability-weighted advantages favor XLV for most investors seeking durable healthcare allocation.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
FXH's Stochastic Oscillator stays in overbought zone for 7 days
The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Technical Analysis (Indicators)
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FXH declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.
FXH broke above its upper Bollinger Band on October 20, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for FXH entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 14, 2026. You may want to consider a long position or call options on FXH as a result. In 82 of 99 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 83%.
The Moving Average Convergence Divergence (MACD) for FXH just turned positive on October 14, 2026. Looking at past instances where FXH's MACD turned positive, the stock continued to rise in 41 of 47 cases over the following month. The odds of a continued upward trend are 87%.
FXH moved above its 50-day moving average on October 14, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for FXH crossed bullishly above the 50-day moving average on October 21, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 69%.
Following a +3.55% 3-day Advance, the price is estimated to grow further. Considering data from situations where FXH advanced for three days, in 238 of 312 cases, the price rose further within the following month. The odds of a continued upward trend are 76%.
PJP in downward trend: 10-day moving average broke below 50-day moving average on October 02, 2026
The 10-day moving average for PJP crossed bearishly below the 50-day moving average on October 02, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 14 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
PJP moved below its 50-day moving average on October 23, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PJP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 74%.
PJP broke above its upper Bollinger Band on October 20, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for PJP entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 14, 2026. You may want to consider a long position or call options on PJP as a result. In 76 of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 87%.
The Moving Average Convergence Divergence (MACD) for PJP just turned positive on October 15, 2026. Looking at past instances where PJP's MACD turned positive, the stock continued to rise in 42 of 47 cases over the following month. The odds of a continued upward trend are 89%.
Following a +3.48% 3-day Advance, the price is estimated to grow further. Considering data from situations where PJP advanced for three days, in 266 of 325 cases, the price rose further within the following month. The odds of a continued upward trend are 82%.
XLV in upward trend: 10-day moving average broke above 50-day moving average on October 15, 2026
The 10-day moving average for XLV crossed bullishly above the 50-day moving average on October 15, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 14, 2026. You may want to consider a long position or call options on XLV as a result. In 77 of 97 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 79%.
The Moving Average Convergence Divergence (MACD) for XLV just turned positive on October 09, 2026. Looking at past instances where XLV's MACD turned positive, the stock continued to rise in 43 of 48 cases over the following month. The odds of a continued upward trend are 90%.
XLV moved above its 50-day moving average on October 09, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +4.44% 3-day Advance, the price is estimated to grow further. Considering data from situations where XLV advanced for three days, in 265 of 327 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
The Aroon Indicator entered an Uptrend today. In 222 of 271 cases where XLV Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 82%.
Bearish Trend Analysis
The 10-day RSI Indicator for XLV moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 similar instances where the indicator moved out of overbought territory. In 30 of the 37 cases, the stock moved lower in the following days. This puts the odds of a move lower at 81%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where XLV declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 82%.
XLV broke above its upper Bollinger Band on October 14, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
| FXH | PJP | XLV | |
|---|---|---|---|
| RSI ODDS (%) | N/A | N/A | 2 days ago 81% |
| Stochastic ODDS (%) | 2 days ago 83% | 2 days ago 76% | 2 days ago 77% |
| Momentum ODDS (%) | 2 days ago 83% | 2 days ago 87% | 2 days ago 79% |
| MACD ODDS (%) | 2 days ago 87% | 2 days ago 89% | 2 days ago 90% |
| TrendWeek ODDS (%) | 2 days ago 78% | 2 days ago 83% | 2 days ago 82% |
| TrendMonth ODDS (%) | 2 days ago 79% | 2 days ago 76% | 2 days ago 84% |
| Advances ODDS (%) | 10 days ago 76% | 10 days ago 82% | 10 days ago 81% |
| Declines ODDS (%) | 6 days ago 80% | 6 days ago 74% | 6 days ago 82% |
| BollingerBands ODDS (%) | 2 days ago 70% | 2 days ago 77% | 2 days ago 80% |
| Aroon ODDS (%) | 2 days ago 75% | 2 days ago 80% | 2 days ago 82% |
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| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| TSCV | 30.15 | 0.03 | +0.09% |
| Thrivent Small Cap Value ETF (TSCV) | |||
| MYCF | 25.05 | 0.02 | +0.06% |
| State Street My2026 Corporate Bond ETF (MYCF) | |||
| FPE | 16.89 | -0.03 | -0.18% |
| First Trust Preferred Securities & Income ETF (FPE) | |||
| BRNY | 56.06 | -0.31 | -0.55% |
| Burney U.S. Factor Rotation ETF (BRNY) | |||
| HODU | 9.22 | -0.32 | -3.32% |
| Direxion Daily HOOD Bull 2X ETF (HODU) | |||
FXH and
Correlation & Price change
A.I.dvisor indicates that over the last year, FXH has been loosely correlated with TXG. These tickers have moved in lockstep 58% of the time. This A.I.-generated data suggests there is some statistical probability that if FXH jumps, then TXG could also see price increases.
| Ticker / NAME | Correlation To FXH | 1D Price Change % | ||
|---|---|---|---|---|
| FXH | 100% | -1.03% | ||
| TXG - FXH | 58% Loosely correlated | +2.58% | ||
| XRAY - FXH | 57% Loosely correlated | -0.74% | ||
| SOLV - FXH | 56% Loosely correlated | -2.33% | ||
| STE - FXH | 56% Loosely correlated | -0.03% | ||
| BDX - FXH | 55% Loosely correlated | -0.75% | ||
More | ||||
PJP and
Correlation & Price change
A.I.dvisor indicates that over the last year, PJP has been loosely correlated with MRK. These tickers have moved in lockstep 62% of the time. This A.I.-generated data suggests there is some statistical probability that if PJP jumps, then MRK could also see price increases.
XLV and
Correlation & Price change
A.I.dvisor indicates that over the last year, XLV has been closely correlated with LLY. These tickers have moved in lockstep 73% of the time. This A.I.-generated data suggests there is a high statistical probability that if XLV jumps, then LLY could also see price increases.